TNB pre-tax profit up by RM200 million

KUALA LUMPUR — Oct. 26, 2017: The pre-tax profit for Tenaga Nasional Berhad for the year ended August 31 went up by about RM200 million to RM8.28 billion.

Revenue increased to RM47.42 billion from RM44.53 billion, thanks to the consistent increase in the operating expenses by eight per cent or RM2.9 billion, the national utility company said in a filing to Bursa Malaysia today.

Profits attributable to shareholders stood at RM6.9 billion compared with RM7.37 billion in the previous financial year, down by 6.3 per cent.

This was mainly due to an increase in finance costs from the new borrowings acquired during the year and an increase in deferred taxation expense due to higher capitalisation of assets.

In the fourth quarter, TNB recorded a higher pre-tax profit of RM2.15 billion compared with RM1.87 billion the year before while revenue rose to RM12.46 billion from RM11.24 billion.

The company said unit electricity demand growth is expected to be stable in line with an improved economic environment.

“Continual implementation of an Incentive Based Regulation also allows better earnings predictability for TNB as fuel costs risks are mitigated,” said the statement.

Given the aforementioned scenarios, the Board of Directors views the prospects of the group for the financial year 2018 to remain stable.

The board has proposed a final single tier dividend of 44 sen per share on 5.66 billion shares for 2017, amounting to RM2.49 billion, which is subject to shareholders’ approval at the forthcoming annual general meeting. — Bernama